First Time Buyers will need to save an extra 4.22% of their wages

According to Nationwide’s latest House Price Index, the UK average house price is now £200,251. Average annual salary in the UK is £26,500 which equates to a First Time Buyer needing to save up 76% of their annual salary just to cover the 10% deposit.

The Hays Group reports that wages will rise 2.5% this year but even taking that into account, if prices continue to rise at the same rate, FTB’s will need an extra £1,141 next year to get on the UK property ladder – 4.22% of their wages.

As you would expect, prospective London first time buyers will be the worst off. They currently need an average of 131% of their annual salary to cover a deposit and this will increase to 143%, meaning they will need to save an extra £5,244 or 14.73% of their annual salary.

By UK country, Wales and Northern Ireland buyers will need an extra £241 and £222 respectively for their deposits, whereas in Scotland, if prices fall annually the same as they did this year, purchasers will need £280 less in their savings pot. In England, buyers will need £1,891 extra which equates to 6.96% of their annual salary.

We think the message to any first time buyers you meet must surely be, get on the ladder as quickly as you can!

first-time-buyers-outlook

Savvy Sales Progressors provides outsourced sales progression services for estate agents. Take a look at our website for more information. You can also try our unique online calculator to see whether outsourcing will be more financially beneficial than an in-house resource: www.savvysalesprogressors.co.uk

 

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